Healthcare Digitalization and Pay-For-Performance Incentives in Smart Hospital Project Financing

Abstract

This study aims to explore the impact of healthcare digitalization on smart hospital project financing (PF) fostered by pay-for-performance (P4P) incentives. Digital platforms are a technology-enabled business model that facilitates exchanges between interacting agents. They represent a bridging link among disconnected nodes, improving the scalable value of networks. Application to healthcare public-private partnerships (PPPs) is significant due to the consistency of digital platforms with health issues and the complexity of the stakeholder's interaction. In infrastructural PPPs, public and private players cooperate, usually following PF patterns. This relationship is complemented by digitized supply chains and is increasingly patient-centric. This paper reviews the literature, analyzes some supply chain bottlenecks, addresses solutions concerning the networking effects of platforms to improve PPP interactions, and investigates the cost-benefit analysis of digital health with an empirical case. Whereas diagnostic or infrastructural technology is an expensive investment with long-term payback, leapfrogging digital applications reduce contingent costs. "Digital" savings can be shared by key stakeholders with P4P schemes, incentivizing value co-creation patterns. Efficient sharing may apply network theory to a comprehensive PPP ecosystem where stakeholding nodes are digitally connected. This innovative approach improves stakeholder relationships, which are re-engineered around digital platforms that enhance patient-centered satisfaction and sustainability. Digital technologies are useful even for infectious disease surveillance, like that of the coronavirus pandemic, for supporting massive healthcare intervention, decongesting hospitals, and providing timely big data. not due to population aging per se, but to the increase in demand for new medical technologies that improve and/or extend life as real per-capita incomes grow [3,4].Within this evolving framework, technology is a double-edged sword, since it increases healthcare expenditure [5] but can also bring savings and quality-of-life improvements [6]. The relationship between medical technology and spending is complex and often conflicting. The impact of technology on costs differs across technologies, in that some (e.g., cancer drugs, invasive medical devices) have significant financial implications, while others are cost-neutral or cost-saving [7]. Medicine in the 21 st century is increasingly dependent on technology. Unlike in many other areas, the cost of medical technology is not declining, and its increasing use contributes to spiraling healthcare costs. Many medical professionals equate progress in medicine to the growing use of sophisticated technology, which is often expensive and beyond the reach of the average citizen [8].Whereas technology concerning tangible items, such as diagnostic equipment or physical infrastructure, has an uncertain cost-benefit trade-off, digital investments have a shorter payback, are typically cheaper, and show sounder benef...

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